Summary dismissal is the most severe form of dismissal under Dutch employment law: your employment contract ends with immediate effect, without a notice period and — in principle — without any right to unemployment benefit or a transition payment. Even so, you do not have to simply accept this. In many cases, a settlement agreement offers a realistic way out, allowing you to claim compensation whilst also protecting your entitlement to unemployment benefit.
What makes summary dismissal so far-reaching
With summary dismissal, your employment ends with immediate effect. Your salary is stopped, you no longer need to report for work, and you are instantly reliant on your own savings. In addition, the UWV (Employee Insurance Agency) regards you as ‘culpably unemployed’, which means a regular unemployment benefit claim is quickly rejected. This makes the situation particularly urgent.
At the same time, the law imposes strict requirements on the employer. Under Article 7:677(1) of the Dutch Civil Code, summary dismissal is only valid if there is an urgent reason, the employer acts without delay — that is, immediately — and communicates the reason at once. Urgent reasons include theft, fraud, or serious violence. In practice, many summary dismissals fail to meet all the statutory requirements, particularly regarding the immediacy of the dismissal or a careful weighing of interests.
Why employers nevertheless offer a settlement agreement
Summary dismissal also carries risks for the employer. If a court later annuls the dismissal, the employment contract is revived with retroactive effect. The employer must then pay all withheld salary — including the statutory increase — and reinstate the employee in the workplace. That is a situation almost no one wants.
For this very reason, employers frequently offer a settlement agreement in practice when an employee indicates they wish to challenge the dismissal. Both parties then exchange the uncertainty of legal proceedings for a negotiated arrangement, with a neutral ground for dismissal and a final financial settlement.
What a good settlement agreement must cover
If you agree to a settlement agreement following summary dismissal, the precise content determines what you ultimately receive. Pay attention to at least the following points:
- Neutral ground for dismissal: wording such as ‘differences of opinion regarding the work’ or a similarly neutral reason is essential to convince the UWV that you are not culpably unemployed.
- Notional notice period: the end date in the agreement must take into account the notice period applicable to you, so that you can apply for unemployment benefit immediately afterwards without a waiting period.
- Compensation: in an ordinary dismissal you are entitled to the statutory transition payment (in 2026, a maximum of €102,000 gross). With a settlement agreement you can also agree a higher payment with your employer; in that case there is no statutory maximum.
- Outstanding entitlements: ensure that holiday days, holiday pay, and any bonuses are explicitly dealt with in the agreement.
- Reference letter: request a positive or at least neutral reference — this is valuable when applying for your next position.
- Release from duties: ensure you are released from your duties with immediate effect, so you can search for a new job without pressure.
- Confidentiality and full and final settlement: understand what you are signing — a full and final settlement clause means you cannot bring any further claims afterwards.
Protecting your unemployment benefit entitlement
For most people, protecting their right to unemployment benefit is the primary goal. Following summary dismissal you are in principle not entitled to unemployment benefit: the UWV regards you as culpably unemployed. A settlement agreement with a neutral ground for dismissal can change this outcome. However, the UWV has its own investigatory powers and can always enquire into the actual circumstances. If the wording in the agreement is not precisely right or the situation raises questions, your unemployment benefit claim is at risk.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekAlways have the agreement reviewed before you sign. An incorrect date or a wrong ground for dismissal can have far-reaching consequences for your benefit.
The two-week cooling-off period
Have you already signed but are having second thoughts? You are not necessarily too late. Under Article 7:670b of the Dutch Civil Code, you have the right to dissolve a settlement agreement in writing within two weeks of signing, without giving any reason. This period exists specifically to protect you, even if you signed under pressure. Use this cooling-off period wisely: consult an employment lawyer immediately if you have any doubts.
Practical tips following summary dismissal
- Do not sign anything during the dismissal meeting itself; always ask for the dismissal letter stating the urgent reason.
- Object in writing as quickly as possible; make clear that you are challenging the dismissal and remain available for work.
- Consult an employment lawyer within a few days — the sooner you act, the stronger your negotiating position.
- Have any settlement agreement reviewed before you sign, even if the employer is applying time pressure.
- Be mindful of the deadlines: challenging the dismissal in court must in principle be done within two months of the date of dismissal.
- Keep all communications — emails, letters, and text messages — as these may serve as evidence later on.
Why Arbeidsjurist Eindhoven
Summary dismissal is one of the most stressful situations you can face in the workplace. At Arbeidsjurist Eindhoven, we know the local labour market and support employees in Eindhoven and the Brabant region in precisely these kinds of situations. We quickly assess whether the dismissal holds up legally, what your negotiating position is, and how to conclude a settlement agreement that truly protects your interests. Contact us without obligation for an initial consultation — we are happy to think through your options with you.
Frequently asked questions
Am I entitled to unemployment benefit after summary dismissal?
Following summary dismissal, the UWV regards you in principle as culpably unemployed, meaning you are not entitled to unemployment benefit. This can change if you successfully challenge the dismissal in court, or if you conclude a settlement agreement with your employer that includes a neutral ground for dismissal. However, the UWV always has the authority to investigate the actual circumstances surrounding the dismissal. Always have the agreement reviewed by an employment lawyer before you sign.
Can I still negotiate compensation after summary dismissal?
Yes, this is certainly possible. If you challenge the dismissal or indicate that you intend to do so, employers frequently offer a settlement agreement in practice to avoid court proceedings. In that agreement, you can not only agree a neutral ground for dismissal but also make arrangements regarding financial compensation, outstanding holiday days, and a reference letter. Seek guidance from an employment lawyer to negotiate the best possible terms.
What should I do if I signed a settlement agreement under pressure?
You have a statutory right to dissolve a signed settlement agreement in writing within two weeks of signing, without having to give any reason. In that case, contact an employment lawyer as soon as possible to discuss what the best next step is and whether renegotiating or challenging the dismissal offers better prospects.
Does summary dismissal affect my transition payment?
In the case of a lawful summary dismissal on the grounds of serious culpable conduct, you are in principle not entitled to the statutory transition payment. However, if the dismissal turns out to be unjustified — or if you conclude a settlement agreement — compensation can still be agreed. In 2026, the maximum statutory transition payment amounts to €102,000 gross. A settlement agreement may also provide for a higher payment.
Within what period must I challenge summary dismissal?
You have in principle two months from the date of the summary dismissal to challenge it before the cantonal court. This deadline is binding: if you let it pass, you can in principle no longer seek annulment of the dismissal. Act quickly and seek legal advice as soon as possible.
We are happy to think along with you. For advice tailored to your situation we would gladly sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
